Tanzania adopts bulk procurement system for LPG

Thursday, 21 July 2016 08:52

The average import volume of LPG in Tanzania has increased from 2,225 mt in 2010/2011 to 5,762 mt in 2014/2015, Pallangyo stated. (Image Source: Steve Buissinne/Pixabay)The government of Tanzania has adopted bulk procurement system for the importation of liquefied petroleum gas (LPG) in the country, effective from September this year

The new system was announced by the Ministry of Energy and Minerals deputy permanent secretary Juliana Pallangyo in Dar es Salaam. She invited all interested parties to participate in the supply of LPG.

“The government is looking forward to change the system effectively September this year. Under the bulk procurement system, it will be easier for local dealers to get LPG from a reliable supplier,” she explained.

Pallangyo, who was speaking at the opening of the two-day annual Africa LPG Summit 2016, noted that the importation of gas under the new system is expected to succeed under the Petroleum and Bulk Procurement Agency (PBPA).

The PBPA was established by the Tanzanian government in 2013 purposely to ease importation of petroleum products and promote efficiency in the sector. With bulk procurement, it will be easier to regulate LPG prices and ensure reliable supply in the country, Pallangyo added.

She also pointed out that the new system will enable the government to regulate LPG prices through its regulatory bodies. It will also allow more Tanzanians to opt for the use of LPG instead of firewood and charcoal, the primary source of energy among majority of the citizens.

“Sub-Sahara and developing Asia account for a whopping 95 per cent of the world’s 1.3bn people without clean cooking fuel,” the deputy PS noted. LPG is considered as the key solution to the region’s electricity and cooking fuel shortage, she added.

She said the LPG was environmental friendly, noting that the government and other stakeholders were doing everything in their powers to promote LPG.